Soares v. Flowers Foods, Inc.

320 F.R.D. 464, 2017 WL 2793807, 2017 U.S. Dist. LEXIS 100418
CourtDistrict Court, N.D. California
DecidedJune 28, 2017
DocketCase No.15-cv-04918-JSC
StatusPublished
Cited by11 cases

This text of 320 F.R.D. 464 (Soares v. Flowers Foods, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Soares v. Flowers Foods, Inc., 320 F.R.D. 464, 2017 WL 2793807, 2017 U.S. Dist. LEXIS 100418 (N.D. Cal. 2017).

Opinion

ORDER RE: MOTION FOR CLASS CERTIFICATION

JACQUELINE SCOTT CORLEY, United States Magistrate Judge

Plaintiffs in this putative class action are distributors who delivered baked goods for Defendants Flower Foods, Inc., Flowers Baking Co. of California, Flowers Baking Co. of Modesto, and Flowers Bakeries Brands, Inc. (together, “Defendants” or “Flowers”). Plaintiffs assert California wage and hour claims based on the allegation that Flowers misclassified its distributors as independent contractors/franchisees rather than employees. Now pending before the Court is Plaintiffs’ motion for class certification. (Dkt. No. 61.1) Having considered the parties’ submissions, and having had the benefit of oral argument, the Court DENIES Plaintiffs’ motion as individual issues predominate and a class action is not superior to individual actions.

BACKGROUND

I. Factual Background2

Flowers and its network of subsidiaries “manufacture and/or distribute various bakery products, most of which are then distributed to retail stores, restaurant, fast food business, military and institutional accounts.” (Dkt. No. 61-6 at 26; Dkt. No. 61-5 at 4.) Flowers uses distributors to move its bread products to stores in the segment of its business known as “direct store delivery.” (Dkt. No. 61-6 at 234-236.) Flowers California began distributing its bakery goods throughout Northern California in February 2018.3 (Dkt. No. 61-6 at 236.) For distribution purposes, Flowers divides its Northern California market area, which extends “from Visalia north to the Oregon Border and from the Pacific Coast to the Nevada border” into distribution territories, which individuals, called “Distributors,” service.

[470]*470Plaintiffs and the putative class members are Distributors who entered into written “Distributor Agreements” to provide distribution services in Northern California Flowers territories during the class period. Generally speaking, Distributors purchase the exclusive right to sell Flowers’ products in given geographic territories and are responsible for delivering, displaying, and selling Flowers products in their areas. The named Plaintiffs began working for Flowers as Prospective Distributors in early 2013. Both became Distributors by entering into Distributor Agreements with Flowers later that year. Soares resigned from Flowers in May 2016. Botelho still works as a Flowers Distributor.

A. Flowers’ Business

When Flowers first opened its Northern California business, it staffed its territories with “Prospective Distributors,” individuals hired by a third-party staffing agency that classified them as employees. Flowers defined “Prospective Distributors” as “Individuals training to become an independent distributor for Flowers; and are not, and will not, become a Flowers employee in a worker’s capacity as a prospective distributor.” (Dkt. No. 67-2 at 158-159.) Flowers management interviewed and selected the candidates, provided training—including a “Distributor College”—and provided the trucks for their routes. The parties dispute the scope of Distributor College and training the Prospective Distributors received. Plaintiffs state that they and other Prospective Distributors attended a two week-long classroom program, were assigned to a route, and received direct hands-on instruction and evaluation from a Branch Sales Manager or other managers, which could include ride-alongs during deliveries. (See, e.g,, Dkt. No. 67-2 191-193, 328-330.) The classroom component included a slide presentation with step-by-step instructions for Distributors’ daily activities, including loading products, packing bread trays, following customer schematics for product placement, setting up promotional displays, rotating stock and pulling stale product from the shelves, and returning stale product from the warehouses, and how to use the handheld computer device that all Distributors must lease from Flowers to record them work. (Dkt. No. 61-5 at 91-472.) Defendants, in contrast, cite evidence that even the individuals who attended the training contend that aside from Flowers-specific practices—like color-coded ties for certain packaging and the handheld computer system the company uses—they did not learn anything new at the Distributor College that they did not already know from prior delivery jobs or learn anything about how to run their businesses profitably. (Dkt. No. 63-23 at 10-11; Dkt. No. 63-27 at 7-9; Dkt. No. 63-29 at 8.)

At the end of the apprenticeships, beginning in the fall of 2013, Flowers offered certain Prospective Distributors a Distributor Agreement based on their performance records and customer service skills. To work as a Distributor, the Prospective Distributors had to enter into the Distributor Agreement and complete other necessary paperwork. As discussed in detail below, the Distributor Agreement involves the Distributor purchasing the distributorship from Flowers; Flowers classifies the distributorships as franchises and the Distributors as franchisees. (See Dkt. No. 61-6 at 21.)

Flowers’ Franchise Disclosure Document states that Flowers “orientation generally must be completed before you start your distributorship.” (Id. at 38.) But other Distributors bought them routes and entered the Distributor Agreement without participating in Distributor College or the Prospective Distributor apprenticeship; they either bought their territories after the initial Flowers California roll-out or purchased territories from other Distributors. Some of Defendants’ declarants state that they received little, if any, training from Flowers.

However they came to own their territory, every Distributor did so only after signing Flowers’ uniform Distributor Agreement.

B. The Distributor Agreement

All putative class members’ Distributor Agreements are materially the same. The Distributor Agreement expressly defines the Distributor as “an independent contractor with the resources, expertise and capability to act as a distributor of [Flowers’] products in the Territory[.]” (Dkt. No. 61-6 at 56; see [471]*471also id § 16.1.) It provides that Distributors “shall not be controlled by [Flowers] as to the specific details or manner of [ ] business” and that the Distributor’s business is “separate and apart from” Flowers’ business. (Id. § 16.1.)

Ünder the Agreement, the Distributor purchases the right to distribute Flowers’ products in a given territory. (Id. § 2.4.) As part of the arrangement, the Distributor agrees to purchase products from Flowers to re-sell to the stores within her territory. (Id. § 8.1.) The Distributor Agreement permits the Distributor to hire other people to service the route. (Id. § 16.2.) Flowers requires the Distributor—or other individuals he hires to deliver the products—to perform its services in accordance with “Good Industry Practice,” which it defines in relevant part as:

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Cite This Page — Counsel Stack

Bluebook (online)
320 F.R.D. 464, 2017 WL 2793807, 2017 U.S. Dist. LEXIS 100418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/soares-v-flowers-foods-inc-cand-2017.